The commercial and industrial sectors in emerging economies present significant energy-savings opportunities both through energy efficiency improvements and advanced technology applications. The multilateral development banks have made significant commitments to invest in climate financing, and ADB, for example, has committed to double its annual climate financing to $6 billion by 2020. Out of the $6 billion, $4 billion will be dedicated to mitigation through scaling up support for renewable energy, energy efficiency, sustainable transport, and building smart cities. To achieve such an ambitious target, there is a pressing need for new and innovative investment approaches in energy efficiency. The presentations in this session will describe practical approaches and “measured” results in overcoming an EE barriers. They will also address strategies for designing efficiency initiatives that are replicable and scalable.
Session Chair: Thomas K. Dreessen, Chairman, EPS Capital Corp
Gokul Pandian, Head - Energy Efficiency and Climate Change, ICF Consulting India Private Limited
Successful Energy Efficient Motor Rewinding and Testing Case Study
Faridabad cluster is one of the energy intensive industrial MSME clusters in India, characterized by a mixed type of industries ranging from engineering, chemical plants and foundries. The energy requirement of the cluster is dependent on electrical energy and the consumption is dominated by motors. As motors are prone to random failures, the industries in the cluster rewind motors using conventional practices, but an efficiency drop of 1% occurs every time when a motor is rewound using conventional methods. Adoption of energy efficient rewinding practices would reduce electricity usage by 30 GWh for the cluster and 270,000 GWh for the nation. The monetary gain would be $100 million for the cluster and $2 billion to India. The replicable potential is quick and applicable across Asia.
Kishore Kumar, Senior Associate, CLASP India Office
Roadmap for Transforming India’s Energy Scenario through Appliance Energy Efficiency Program
Electricity demand in India is expected to increase to 1,566 terawatt hours (TWh) by 2021. The demand in the residential sector is projected to increase by 3 percent. Because of the projected increase the Bureau of Energy Efficiency launched the Standards & Labeling Program in 2006 to improve efficiency of appliances and transform the market. Since then, more than 1 billion household appliances have been registered across 21 categories, resulting in cumulative electricity savings of 197 TWh. The Bureau plans to save 1.105 TWh of electricity in 2021–2022. This presentation will propose a paradigm shift and a roadmap of innovative approaches such as increasing stringency, a transition from a voluntary to a mandatory phase, and adding new appliances to the program, in order to increase the savings to as much as 158 TWh in 2021–2022.
Alexander Ablaza, President, Philippine Energy Efficiency Alliance
How a New Energy Efficiency Law and Fiscal Incentives can Enable a Lion’s Share of $243 Billion in Third Party Capital Flows toward EE Technology Deployment in the Philippines
The Philippine Government has approved and updated an Energy Efficiency & Conservation Roadmap that aspires to ramp up the country’s annual energy savings. The nonprofit Philippine Energy Efficiency Alliance estimates that $243 billion will need to be mobilized for technology deployment across end-use sector, to shave off an aggregate 182 Mtoe through the next 22 years. Two thirds of this capital requirement will have to flow as third party investments through ESCO and PPP contracts. The Philippine Senate has recently approved a bill that would regulate energy end use and enable fiscal incentives to catalyze capital flows for self financed, debt financed and third party investments in EE projects. This presentation will share how such a policy framework could improve the commercial returns of investments in ESCO implemented projects hosted by commercial and industrial facilities, and how this could be improved to widen the reach across other economic sectors.
Anthony Watanabe, Managing Director, Asia Clean Innovations
Driving Energy Efficiency in ASEAN’s Garment Supply Chain
Multinational garment brands have set ambitious sustainability targets. And with so much of their production base located right here in ASEAN, Southeast Asia is where those strategies live or die. Drawing on practical lessons learned from deep dives into garment factories across ASEAN, plus numerous in-depth discussions with brands themselves, this presentation will address the important roles of all players in the energy efficiency ecosystem. Key takeaways to date: (a) as low hanging fruit get picked, EE becomes increasingly more difficult; (b) technology plays a role, but sustained EE gains will only be realized through capacity building, financing and rigorous M&E; (c) the energy management skills gap in this sector is a problem; and, (d) unlike RE, EE is not hindered by policy uncertainty.